Is There a J-Curve Effect in the Korean Service Trade?

In this article, we test the asymmetric J-curve hypothesis using data from 10 Korean service industries. When we tested for a symmetric J-curve using the linear autoregressive distributed lag (ARDL) approach, we found support for the J-curve in one industry and the inverse J-curve in two industries. However, when we tested the asymmetric J-curve using the nonlinear ARDL approach, we found support for the asymmetric J-curve in four industries and the asymmetric inverse J-curve in four more industries. The increase from three to eight cases is attributed to the nonlinear adjustment of the real effective exchange rate of the won.